Which of the Following Statements Regarding Multidomestic and Global Competition

question 79

Multiple Choice

Which of the following statements regarding multidomestic and global competition is false?

• A) In global competition,rivals vie for worldwide market leadership and the leading competitors compete head to head in the markets of many different countries.
• B) In globally competitive industries,a company's competitive position in one country both affects and is affected by its position in other countries.
• C) One of the features of multidomestic competition is there is greater cross-country variation in market conditions and the nature of the competitive contest among rivals than tends to be the case in globally competitive markets.
• D) With multidomestic competition,the competitive contest is localized,with rivals battling for national market leadership;moreover,winning in one country market does not necessarily signal that a company has the ability to fare well in the markets of other countries.
• E) In global competition,the size of a firm's worldwide competitive advantage (or disadvantage)equals the sum of the competitive advantages (or disadvantages)it has in each country market where it competes.

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Definitions:

Finished Goods

Products that have completed the manufacturing process and are ready to be sold.

Budgeted Cash Receipts

An estimate of all cash inflows a company expects to receive during a particular period based on expected sales or other income sources.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.

Cost Of Goods Sold

The total of all costs used to create a product or service, which has been sold.